The million dollar question: should you buy now or wait for the market to “fall even further”?
Buyers today have much more access to information. There is definitely a lack of urgency in the market as buyers think there will soon be another similar house going on the market. There is no more fear of missing out. The bigger fear is the fear of buying too high. This fear is unfortunately holding people back and can in fact cause regret.
I’ve worked with buyers who refused to go higher during the auction (‘principles!’) – and I am talking just two weeks ago – and are now regretting their decision because they cannot find anything suitable thereafter. They have even asked whether they can buy their dream home off the new purchasers and let them have a profit.
There are some great buys out there in the market right now – but only if you dare to act. Sure the market might slide a 5% further, but if it’s a house that you love and you plan to stay there for another 5 years, then there is really no harm to buying now if you consider the tangible and intangible benefits (and costs) of owning that new home. Mortgage interest rates are at an all time low, and are poised to go lower.
Human psychology can certainly be interesting (and a huge driver of the market) – if the prices drop by 5%, many will say that they shouldn’t buy now because prices will be cheaper soon. Another 5% later and they will still be saying the same thing, but with greater conviction. But at what point should prices stop falling then before these buyers make a move?
Immigration numbers have certainly eased (as outlined above) but show no signs of being cut off entirely. The pace of building remains generally unchanged, which means the shortfall in housing remains unaddressed. Market support for existing prices remain strong, short of any substantive external shock. And if one hits, will you really be buying anyway?
All that being said, just make sure you are prepared for the costs of ownership and that the house suits your needs. Work with me today and enjoy the benefits, cost savings and insights I get from being in the property trenches on a daily basis – for free.